The United States Department of Transportation (DOT) has approved the joint interim exemption application filed by Allegiant Travel Company and Sun Country Airlines Holdings.
While awaiting further action from the U.S. DOT, the two companies will be able to continue operating as separate airlines under common ownership.
In January this year, Allegiant Air announced that it would acquire Sun Country Airlines. The two companies plan to hold an extraordinary shareholders’ meeting on May 8, and expect the transaction to close following shareholder approval.
Allegiant Air operates 551 routes mainly serving small and medium-sized cities, while Sun Country Airlines operates 105 complementary routes mainly to major metropolitan areas. Together, they will have a fleet of 195 aircraft and serve approximately 175 cities. Their annual passenger volume is 11 million, and they aim to strengthen competitiveness by increasing nonstop flights to untapped markets and resort destinations. Within three years after integration, they expect to generate annual synergies of 140 million U.S. dollars.
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